Elite UK REIT - RHB Research 2026-04-27: Showing Steady Improvements; BUY

• Elite UK REIT (SGX:MXNU)’s 1Q financials were slightly ahead of expectations, coupled with a positive surprise from valuation uplift post lease signings. It is not impacted from rising utility costs with all its leases on triple-net bases.
• - Read this at SGinvestors.io -

1Q distributable income up 9.8% y-o-y.

• 1Q distributable income up 9.8% y-o-y on the back of reduced vacancy costs and interest savings. Elite UK REIT has divested partially occupied Ladywell House in Edinburgh for GBP3.3m (+8.3% premium to the latest valuation). Interest costs were flat q-o-q at 4.7% with ~92% of its rate fixed. The REIT is currently in discussions to refinance its debt due for renewal next year, with plans to stagger the loan expiries and lower debt margins.
• - Read this at SGinvestors.io -

Portfolio valuation up 8.4%.

• Portfolio valuation up 8.4% post the latest lease re-gearing exercise, which saw a substantial (two-thirds) or ~64% of leases by income expiring in Apr 2028 being extended by 7-10 years – bettering our expectations. This also reflects further valuation growth potential if Elite UK REIT secures lease extensions for the remaining 32% of leases set to expire in Apr 2028.
• The valuation increase has also brought down net gearing to a comfortable 37.4% from 40.7% and a ~13% increase in NAV to GBP0.45 per unit.

Targets to divest Peel Park DC development site by end 2026.

• Read more at SGinvestors.io.

Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2026-04-27

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